Fresh milk exports to stop farmer decline

Brian Tessmann has called for the Federal Government to negotiate freer trade with China and fund infrastructure that will take advantage of milk prices of up to $20 a litre in Asia.

"I've had people tell me if they pick it up on a Monday in south-east Queensland they can have it on a shelf in China on a Wednesday, if there is no hindrance getting it into China," he said.

"The government has a big role principally with the Free Trade Agreement. There are limitations put on Australia in general which delays fresh milk crossing the border into China."

Mr Tessmann says although farmers in southern states are taking advantage of Asian markets by exporting powdered milk, Queensland farmers have the potential to ship fresh liquid milk if relevant infrastructure is put in place.

"The challenge is getting the milk to China without it going off," he said.

"You can't have an eight day delay at the wharf where you check a product with fresh milk.

'We presently don't have the manufacturing ability to take advantage of some markets.

"We've seen it as $8 a litre in China and other reports of anything up to $20 a litre."

Mr Tessmann says several milk companies are working on exporting fresh milk to Asia, which may serve to buoy the dwindling industry if allowed to expand.

"Norco has been working hard on the overseas market like China and other tigers to get milk in there," he said.

"It's what's really needed for the Queensland farmers who are currently competing with western farmers, the lowest paid dairy farmers in Australasia," he said.

"We need something done to boost the local industry or we'll lose this opportunity.

"We need to hold the dairy farmers we have now because when dairy farmers leave the industry they don't often return.

"We need quick action to do that."

Mr Tessmann told the ABC in January the number of dairy farmers has reduced from about 1,500 since deregulation in 2002 to just under 500 now.